PRICE OF PETROL

Nelson Evening Mail, Volume LXXI, 4 May 1938, Page 6

PRICE OF PETROL

REDUCTION OF HALFPENNY A GALLON STATEMENT BY MINISTER [United Press Association] WELLINGTON. This Day. A reduction of id a gallon in th« wholesale and retail prices of motorspirit throughout all those areas in the Dominion at present covered by price fixation regulations was announced last evening by the Minister of Industries and Commerce, Hon. D. G. Sullivan. The necessary regulations were gazetted yesterday, and the reduction will take effect as from to-day. Similar reductions are also being made by the oil companies in the areas where prices are not yet fixed by regulation. "The position generally regarding the price of this commodity is receiving the constant attention of the Government.” said Mr Sullivan, "and I am pleased to be able to indicate that I have received the co-operation of the oil companies in regard to the problems in connection with petrol matters generally with which I, as Minister of Industries and Commerce, have been faced. Toward the end of last year overseas tanker freight rates rose to such an extent that I was compelled to recognise that the landed cost of petrol had so risen as to warrant an ; increase of Id a gallon in price. A* ! I pointed out at that time this increase was entirely due to circumstances outside Government control and a most thorough and intensive investigation, supported by information from overseas, was carried out before the advance was permitted. “Since that time the position has j been closely watched. My department , has been in contact with the oil companies in connection with a possible reI duction and with the recent quotations I received from overseas it was recog- ' nised by the companies that a reduction could be made. The oil companies themselves approached me to advise that there had been an easing r off in overseas prices and tanker freight rates with the result that id a gallon reduction in price could be effected. The figures have subsequently been examined by my department and found to be justified. “It is hoped that the easing in overseas prices will continue and as soon as the occasion warrants it the Government will lose no time in taking the necessary steps toward effecting further reductions.”